verb, fad⋅ed, fad⋅ing, noun | 1. | to lose brightness or vividness of color. |
| 2. | to become dim, as light, or lose brightness of illumination. |
| 3. | to lose freshness, vigor, strength, or health: The tulips have faded. |
| 4. | to disappear or die gradually (often fol. by away or out): His anger faded away. |
| 5. | Movies, Television.
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| 6. | Broadcasting, Recording.
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| 7. | Football. (of an offensive back, esp. a quarterback) to move back toward one's own goal line, usually with the intent to pass, after receiving the snapback from center or a hand-off or lateral pass behind the line of scrimmage (usually fol. by back): The quarterback was tackled while fading back for a pass. |
| 8. | (of an automotive brake) to undergo brake fade. |
| 9. | to cause to fade: Sunshine faded the drapes. |
| 10. | (in dice throwing) to make a wager against (the caster). |
| 11. | Movies, Television.
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| 12. | Broadcasting, Recording. to cause (the volume of sound) to increase or decrease gradually (usually fol. by in or out). |
| 13. | an act or instance of fading. |
| 14. | Movies, Television Informal. a fade-out. |
| 15. | Automotive. brake fade. |

| a gradual loss of braking power resulting from decreased friction between the lining and the drum or disc of the brake and usually caused by overheating. |
fade (fād) v. fad·ed, fad·ing, fades v. intr.
fade in
[Middle English faden, from Old French fader, from fade, faded, probably from Vulgar Latin *fatidus, alteration of Latin fatuus, insipid.] |
fade
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Fade
1. A contrarian investment strategy used to trade against the prevailing trend. "Fading the market" is typically very high risk, requiring the trader to have a high risk tolerance. A fade trader would sell when a price is rising and buy when it's falling. Also known as "fading".
2. In a dealer market, it is the failure of a dealer to honor a quote when a customer or another dealer wants to trade.
Investopedia Commentary
1. An example of fading would include buying on a dip in price and selling when the price rallies. Often it's a rather volatile strategy, but one which offers the potential for significant short-term gains. It requires little in the way of complicated analysis but the risk that trend continues is always present.
2. For example, if a better bid is posted on another exchange for a security and a market maker is unwilling or unable to match it for a client order, the market maker may offer to trade with the other market maker (with the better price). The market maker offering the better price must accept the offer and trade at the price offered or adjust the bid price.
Related Links
Introduction To Technical Analysis
The Basics of Bollinger Bands
Peak-and-Trough Analysis
See also: Breakout, Contrarian, Drawdown, Rally, Technical Analysis, Trend, Trend Analysis, Trendline
Also spelled: Fading